CoreCivic (NYSE:CXW) Shares Down 4.2% - What's Next?

Key Points

• CoreCivic shares fell 4.2% to about $33.74, despite trading above both its 50-day and 200-day moving averages. Trading volume was unusually light at roughly 105,700 shares.
• Analysts remain broadly optimistic, with a consensus “Buy” rating and an average price target of $39.40; Benchmark raised its target to $45.00. CoreCivic also exceeded quarterly earnings and revenue expectations and reported 27.3% year-over-year revenue growth.
• The company authorized a $500 million share repurchase program, covering up to 15.7% of outstanding shares. However, insiders sold approximately $15.4 million worth of stock over the past three months, while institutional investors own 85.13% of the shares.

CoreCivic, Inc. (NYSE:CXW - Get Free Report) dropped 4.2% during trading on Monday . The company traded as low as $33.86 and last traded at $33.74. Approximately 105,700 shares changed hands during trading, a decline of 92% from the average daily volume of 1,273,657 shares. The stock had previously closed at $35.23.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on CXW shares. Benchmark increased their price objective on shares of CoreCivic from $41.00 to $45.00 and gave the company a "buy" rating in a research report on Friday, August 7th. JonesTrading reiterated a "buy" rating and issued a $42.00 price objective on shares of CoreCivic in a report on Friday. Northland Securities set a $40.00 price objective on shares of CoreCivic in a research report on Friday, June 26th. Noble Financial reaffirmed an "outperform" rating on shares of CoreCivic in a research report on Monday, August 10th. Finally, Wall Street Zen upgraded CoreCivic from a "hold" rating to a "buy" rating in a research note on Monday, August 10th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, CoreCivic has a consensus rating of "Buy" and an average target price of $39.40.

CoreCivic Price Performance

The company has a market capitalization of $3.26 billion, a P/E ratio of 26.44 and a beta of 0.60. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.86. The business has a 50 day simple moving average of $32.72 and a 200-day simple moving average of $26.17.

CoreCivic (NYSE:CXW - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $0.38 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.04. The business had revenue of $684.92 million for the quarter, compared to analysts' expectations of $618.63 million. CoreCivic had a net margin of 5.15% and a return on equity of 9.22%. The company's revenue for the quarter was up 27.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.59 EPS. CoreCivic has set its FY 2026 guidance at 2.610-2.700 EPS. Analysts predict that CoreCivic, Inc. will post 2.69 EPS for the current fiscal year.

CoreCivic announced that its board has authorized a share buyback plan on Monday, August 10th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the real estate investment trust to reacquire up to 15.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other CoreCivic news, Director Mark A. Emkes sold 30,000 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $34.25, for a total transaction of $1,027,500.00. Following the completion of the transaction, the director owned 141,274 shares in the company, valued at approximately $4,838,634.50. The trade was a 17.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Lucibeth Mayberry sold 120,000 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $33.29, for a total value of $3,994,800.00. Following the transaction, the executive vice president owned 149,329 shares of the company's stock, valued at $4,971,162.41. This trade represents a 44.56% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 459,287 shares of company stock worth $15,431,193. 1.76% of the stock is owned by company insiders.

Institutional Investors Weigh In On CoreCivic

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of CoreCivic during the 2nd quarter worth about $480,557,000. Lee Danner & Bass Inc. boosted its holdings in shares of CoreCivic by 273.1% in the first quarter. Lee Danner & Bass Inc. now owns 2,173,498 shares of the real estate investment trust's stock valued at $41,101,000 after acquiring an additional 1,590,940 shares in the last quarter. Park West Asset Management LLC bought a new position in shares of CoreCivic in the second quarter valued at approximately $27,310,000. JB Capital Partners LP acquired a new position in shares of CoreCivic during the second quarter valued at approximately $25,677,480. Finally, Deutsche Bank AG acquired a new position in shares of CoreCivic during the second quarter valued at approximately $18,805,000. Institutional investors and hedge funds own 85.13% of the company's stock.

About CoreCivic

CoreCivic, Inc NYSE: CXW is a diversified government-solutions company that provides detention, corrections and residential reentry services. The company partners with federal, state and local government agencies to design, develop, own, lease and manage correctional and detention facilities in the United States.

Through its CoreCivic Safety operations, the company manages correctional and detention facilities and provides related services, including security, inmate care, transportation and rehabilitation programs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.